Shale companies are bullish on the oil price and expect a big cash payoff next year
US independents stick to the script
Shale producers are cautiously eyeing Opec+ before lifting capex while substantially trimming hedging
Any expectations that booming oil and gas prices might prompt the US shale patch to accelerate drilling heading into 2022 have been largely dashed by the third-quarter results announcements of a swathe of independents. “This industry tried a market share war with Opec before and it did not work out,” says Kaes Van’t Hof, CFO at Texan independent Diamondback Energy. “Why do we not let Opec bring back their spare capacity, stay flat, and see what the future holds in 2023 and beyond?” The sentiment was shared by many independent operators, concerned that lingering economic volatility could still hamper global energy demand and that the Opec+ alliance could quickly renege on its supply pledge. “
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
